Shweta has recently joined an organisation where she had to sign a “bond” which states that in case she wishes to leave the company before 2 years, she will have to pay the entire amount paid by the organisation till the date of her resignation. Shweta has completed one year in the organisation, and recently got a better offer from another organisation. Shweta is apprehensive about such the bond which she signed during joining. Can the organisation claim the entire amount from Shweta? Is this a valid agreement?

Options

Yes, this is a valid, as all employment agreements are contracts between two private parties who have consented to such terms and conditions.Yes, this is a valid clause as such lock-in clauses are valid under Indian lawNo, such bonds are invalid under the Indian Contract Act and the organisation will not be able to recover any amount from ShwetaNo, such bonds are invalid under the Indian Contract Act and organisation will be able to recover only reasonable actual training and search cost from Shweta.